The traditional nature of work is changing rapidly. Full-time jobs with regular hours, set places of work, and long-term loyalty between employer and employee are fading. Instead, work is becoming more flexible, independent, and customized. This shift is being driven by several interrelated factors:
- COVID has reset priorities and attitudes about the role of work in life
- Remote work has untethered many jobs from set locations
- Automation continues to reshape roles, eliminating some jobs while creating new ones
- Specialized independent workers can provide value through niche skills and connections
- Productivity expectations are becoming more output-focused rather than hours-focused
- Belief systems around employment are evolving from traditional ideals of loyalty
Fractional Models Offer Agility and Specialization
Fractional working arrangements allow businesses to tap into on-demand, specialized skills without the overhead of full-time employees. Highly experienced “fractional executives” act as flexible consultants, moving between projects and clients. This gives companies access to a broad range of institutional knowledge without the long-term commitment.
For fractional workers, it provides greater flexibility, control, and variety in their work. They can choose when, where, and how much to work. Their value comes from leveraging niche expertise across multiple companies. Networks expand opportunities.
The fractional workforce is managed through online talent platforms. Work is project-based, with clear objectives and metrics. Participants are rated by employers and employees after completing engagements.
A Future of Liquid Workforces and Porous Company Edges
The fractional model is a harbinger of a broader shift toward more fluid, customizable labor markets. As more skilled work becomes project-based, corporate boundaries will become more porous. Talent platforms will enable rapid assembly and disassembly of teams according to each project’s needs.
Rather than having core employees handle all tasks, companies will build ecosystems that pull in specialists for defined objectives. Work and pay will be parceled into smaller, well-defined chunks. Automation will handle repetitious tasks while humans focus on high-value skills like creativity, empathy, and problem-solving.
Overall this represents a move away from centralized hierarchies and long-term affiliations between companies and workers. Workforce planning will require deeper understanding of how to efficiently mix internal resources and external networks. The future is a dynamic mix of humans and machines, with project needs dictating resourcing.
Benefits of Leveraging Fractional Executives
For companies looking to catalyze transformation and growth, fractional executives offer an agile solution. They provide seasoned leadership without the often difficult process of recruiting full-time C-suite talent.
Fractional executives also allow smaller companies to access high-caliber experience. A startup may engage a fractional CFO, CTO, or CMO to drive key initiatives. The company gains wisdom and connections impossible to achieve otherwise at an early stage.
By engaging specialized fractionals, companies can focus internal staff on core activities while tapping niche veterans for targeted projects. They get seasoned expertise without ballooning headcount.
Fractionals help firms respond rapidly to opportunities and challenges. The mix of internal and external resources creates flexibility to scale up/down and remix competencies. Companies can move nimbly while controlling costs.
The fractional model offers a glimpse of the technology-enabled workforce ecosystems that will become more prevalent. Savvy adopters will gain advantage in accessing skills and maximizing productivity
